ICE releases Q4 financial results

Intercontinental Exchange (ICE) (NYSE: ICE), the leading global network of exchanges and clearing houses and provider of global data and listing services, today reported financial results for the fourth quarter and full year of 2017. For the quarter ended Dec. 31, 2017, consolidated net income attributable to ICE was $1.2 billion on $1.1 billion of consolidated revenues less transaction-based expenses. This included $764 million of a deferred tax benefit related to U.S. tax reform. Fourth quarter GAAP diluted earnings per share (EPS) were $2.08. On an adjusted basis, consolidated net income attributable to ICE was $433 million in the fourth quarter, and diluted EPS were $0.73.

For the full year of 2017 consolidated net income attributable to ICE was $2.5 billion on $4.6 billion of consolidated revenues less transaction-based expenses. Full-year 2017 GAAP diluted EPS were $4.23. On an adjusted basis, consolidated net income attributable to ICE was $1.8 billion for the full year of 2017, and diluted EPS were $2.95. Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on adjusted operating expenses, adjusted net income and adjusted diluted EPS.

"We are pleased to deliver our twelfth consecutive year of record revenue," said ICE Chairman and CEO Jeffrey C. Sprecher in a statement. "We achieved this by executing on our strategy to deliver best-in-class trading, clearing, listings and information services while continuing to expand our range of content and distribution solutions to meet the evolving needs of the market. As we look to 2018 and beyond, we are focused on innovation and growth to serve our customers and build shareholder value.”

Scott A. Hill, ICE CFO, added: “In addition to investing in growth, we returned more capital to shareholders in 2017 than any year in our history enabled by another year of record revenue, disciplined expense management and strong cash flow. We remain committed to creating long-term value for our shareholders through operational execution and strategic investments to build on our track record of growth."

Fourth quarter 2017 GAAP results

Fourth quarter 2017 consolidated revenues, less transaction-based expenses, were $1.1 billion. Trading and clearing segment revenues, less transaction-based expenses, were $517 million in the fourth quarter 2017. Data and listings segment revenues were $627 million in the fourth quarter of 2017, including data services revenues of $525 million and listings revenues of $102 million. Fourth quarter data services revenues were reduced by $4 million due to the sale of Trayport on Dec. 14, 2017.

Consolidated operating expenses were $552 million for the fourth quarter of 2017. On an adjusted basis, consolidated operating expenses were $479 million. Consolidated operating income for the fourth quarter was $592 million and operating margin was 52%. The effective tax rate for the fourth quarter was (84)% driven by a $764 million deferred tax benefit related to U.S. tax reform.

Consolidated operating expenses were $2.3 billion for 2017. On an adjusted basis, consolidated operating expenses were $1.9 billion. Consolidated operating income for 2017 was $2.4 billion and operating margin was 51%. The effective tax rate for 2017 was (1)% driven by a $764 million deferred tax benefit related to U.S. tax reform.

Consolidated cash flows from operations were $2.1 billion for the full year of 2017. Operational capital expenditures in 2017 were $179 million and capitalized software development costs totaled $137 million.

Unrestricted cash was $535 million and outstanding debt was $6.1 billion as of Dec. 31, 2017.